Detailed Guide to Calculating Real Estate Agency Commission

What is a Real Estate Agency Commission?

The commission is the fee due to the real estate agency for the mediation activity carried out between seller and buyer. It should not be confused with other costs related to the sale, such as notary fees, taxes, or urban planning certificates: the commission refers exclusively to the brokerage service.

The role of the real estate agent goes far beyond simply putting two parties in contact: it involves analyzing the market, effectively promoting the property, selecting potential buyers, organizing viewings, managing negotiations, and providing legal support up to the final deed. The commission, therefore, represents the remuneration for a set of activities that ensure the successful outcome of the transaction.

How is the Commission Calculated?

In Italy, the commission is calculated as a percentage of the property’s sale price. It generally ranges between 2% and 5%, although the percentage may vary depending on several factors:

• Type of property: residential, commercial, luxury.

• Value of the property: for higher amounts, the percentage may be slightly lower.

• Local market: area conditions and competition influence common practice.

Practical examples:

• Sale of an apartment at €300,000 with a 3% commission → €9,000.

• Sale of a villa at €1,000,000 with a 2.5% commission → €25,000.

These amounts are agreed upon at the time of the sales mandate and formalized in the contract, ensuring maximum transparency.

Who Pays the Commission: Buyer, Seller, or Both?

Italian law states that the commission is due to the real estate agency once the deal is concluded thanks to its involvement. In practice, unlike in other countries, in Italy both parties usually pay the commission—seller and buyer alike. This approach ensures fairness and underlines the central role of the intermediary.

Abroad, the rules differ: for example, in the United States it is often only the seller who pays the commission, which can reach 5–6% of the sale price. Each market has its own specific characteristics.

Services Included in the Commission

Many people wonder what is actually included in the commission and why it is worth relying on a qualified agency. In reality, behind this percentage lies a comprehensive set of services that truly make the difference between a simple sale and a safe, successful one.

Key services include:

• Accurate property valuation: comparative market analysis, correct price definition, and positioning strategies. An incorrectly valued property risks remaining unsold for a long time or being undersold.

• Targeted, multi-channel promotion: optimized listings, professional photos and videos, virtual tours, advertising on leading portals, digital campaigns, and access to a database of qualified clients.

• Negotiation management: selection of potential buyers, screening of offers, and expert, impartial negotiations to achieve a satisfactory agreement for both parties.

• Legal and administrative support: prior verification of documentation (deeds, surveys, certifications), contractual advice, and constant assistance up to the notarial deed.

In summary, the commission covers a range of professional activities that reduce risks and optimize timing, turning the sale or purchase into a smooth and secure process.

Why Commission is an Investment, Not a Cost

The commission is often perceived as a cost to be minimized. In reality, it represents an investment in safety, efficiency, and the financial outcome of the transaction. A qualified agency does much more than simply finding a buyer: it brings experience, legal expertise, and marketing tools to maximize the sales process.

Relying on a professional means:

• Selling or buying more quickly, avoiding long market exposure and potential devaluation.

• Achieving the best possible price, thanks to expert negotiation protecting the client’s interests.

• Avoiding legal, fiscal, or bureaucratic risks that could result in unexpected costs far greater than the commission itself.

• Having the certainty that all phases are handled with transparency and professionalism, from valuation to the final deed.

For buyers, the commission translates into a safe purchase, with verified documentation and clear negotiations; for sellers, it means enhancing the property and reaching the sales goal more quickly.

Why Choose Engel & Völkers

Engel & Völkers stands out for its approach based on transparency, reliability, and quality of services. By relying on our network, clients are guaranteed:

• Clear and transparent economic terms: no surprises everything is agreed and formalized.

• Premium services included: valuations based on advanced tools, professional photo shoots, international marketing strategies.

• Global network: strong presence in over 30 countries and access to an international portfolio of qualified buyers.

Choosing Engel & Völkers means turning the commission into a safe investment that delivers real value and tangible results.